Oil price forecast: Keep an eye on cost of production

Sanford C. Bernstein, the Wall Street research company, estimates that non-OPEC marginal cost of production rose last year to $104.5 a barrel, up more than 13% from $92.3 a barrel in 2011, according to the Financial Times.
New production is capping price rises, but the average cost of production is rising rapidly, impacting some producers and regions more than others. In the long run, this is not sustainable and nor is the shale oil industry itself, some believe, if prices fall much lower………………………………………..Full Article: Source